DSCR Loan vs. Conventional Loan?

‍Which One is Better for Real Estate Investors?

If you’re deciding between a DSCR loan and a conventional loan, the choice depends on your investment goals, income structure, and how fast you want to scale.

Key Differences:

• Qualification: Conventional loans require tax returns, pay stubs, and employment history. DSCR loans are based on rental income alone.
• Ownership: DSCR loans can be issued to LLCs; conventional loans are typically in personal names.
• Speed & Flexibility: DSCR loans close faster with less red tape, ideal for active investors.

When to Use Each:

• Use DSCR loans when scaling multiple properties or using short-term rentals.
• Opt for conventional loans if you can easily verify personal income and you are not trying to scale your portfolio

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